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Shopify (SHOP) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Shopify (SHOP - Free Report) closed at $151.02, marking a +0.62% move from the previous day. This move outpaced the S&P 500's daily gain of 0.22%. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, lost 0.15%.
Heading into today, shares of the cloud-based commerce company had gained 11.36% over the past month, outpacing the Computer and Technology sector's loss of 2.32% and the S&P 500's loss of 0.57% in that time.
Wall Street will be looking for positivity from SHOP as it approaches its next earnings report date. This is expected to be February 21, 2019. The company is expected to report EPS of $0.20, up 33.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $327.13 million, up 46.82% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.31 per share and revenue of $1.05 billion, which would represent changes of +93.75% and +56.57%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for SHOP. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 14.72% higher. SHOP is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, SHOP is currently trading at a Forward P/E ratio of 483.19. Its industry sports an average Forward P/E of 30.69, so we one might conclude that SHOP is trading at a premium comparatively.
Also, we should mention that SHOP has a PEG ratio of 19.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Services industry currently had an average PEG ratio of 2.29 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 92, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Shopify (SHOP) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Shopify (SHOP - Free Report) closed at $151.02, marking a +0.62% move from the previous day. This move outpaced the S&P 500's daily gain of 0.22%. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, lost 0.15%.
Heading into today, shares of the cloud-based commerce company had gained 11.36% over the past month, outpacing the Computer and Technology sector's loss of 2.32% and the S&P 500's loss of 0.57% in that time.
Wall Street will be looking for positivity from SHOP as it approaches its next earnings report date. This is expected to be February 21, 2019. The company is expected to report EPS of $0.20, up 33.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $327.13 million, up 46.82% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.31 per share and revenue of $1.05 billion, which would represent changes of +93.75% and +56.57%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for SHOP. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 14.72% higher. SHOP is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, SHOP is currently trading at a Forward P/E ratio of 483.19. Its industry sports an average Forward P/E of 30.69, so we one might conclude that SHOP is trading at a premium comparatively.
Also, we should mention that SHOP has a PEG ratio of 19.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Services industry currently had an average PEG ratio of 2.29 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 92, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.